The meaning of market structure and the factors determining it.

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Answer 1

Question

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

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Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

Answer 2

Question

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

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Answer 3

Question

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

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Answer 4

Question

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

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Answer 5

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Answer 6

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Answer 7

Chapter 8, Problem 1P

To determine

The meaning of market structure and the factors determining it.

Answer 8

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.